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Economy: United Kingdom

After a period of generally disappointing growth in 2011 and
2012, the UK economy showed clear signs of recovery during
2013 and which is expect this to continue in 2014-15. All major
industry sectors and regions have shown positive growth trends.
Given these projections, the UK could overtake France, to become
the fifth largest economy in the world before 2020.
Inflation appears to be under control for now, but interest rates
are likely to start rising gradually from late 2014 or early 2015 in
order to keep inflation around target in the longer term.
Higher interest rates will be one factor causing recent rapid rates
of house price inflation to moderate later in this decade, as
discussed in detail in this report. But the housing market remains
an important source of risk for the UK economy, together with
possible global shocks and relatively weak productivity growth.

Economy: South Africa

While much of the world staggered in the wake of the global financial meltdown,
South Africa has managed to stay on its feet largely due to its prudent fiscal and
monetary policies.
The country is politically stable and has a well capitalized banking system,
abundant natural resources, well developed regulatory systems as well as research
and development capabilities, and an established manufacturing base.
Ranked by the World Bank as an upper middle-income country, South Africa is
the largest economy in Africa and it remains rich with promise. It was admitted to
the BRIC group of countries of Brazil, Russia, India and China (known as BRICS) in
2011.
With a world-class and progressive legal framework, South African legislation
governing commerce, labour and maritime issues is particularly strong, and laws
on competition policy, copyright, patents, trademarks and disputes conform to
international norms and standards. The country's modern infrastructure supports
the efficient distribution of goods throughout the southern African region.
The economy has a marked duality, with a sophisticated financial and industrial
economy having grown alongside an underdeveloped informal economy. It is this
second economy which presents both potential and a developmental challenge.

STATS

United Kingdom
(ranking)

South Africa
(ranking)

GDP

$2.44 trillion
7th out of177

$384.31 billion
28th out of177

GDP>
Composition by secto
r
>Industry
Public debt

0.7%
204th out of218

32.1%
66th out of217

88.7% of GDP
19th out of149

42.3% of GDP
78th out of149

GDP> Per capita >

PPP

$36,600.00
21st out of188

$11,300.00
82nd out of188

GDP>
$2.31 trillion
Purchasing power pari 8th out of190
ty
GDP>
0.2%
Real growth rate
152nd out of191

$576.10 billion
25th out of190

GDP per capita

$7,507.67
68th out of177

$38,514.46
21st out of177

2.5%
110th out of191

GDP>
Composition by secto
r
>Industry
Exports

21.1%
146th out of217

32.1%
66th out of217

$473.00 billion
10th out of189

$93.48 billion
40th out of189

Unemployment rate

8%
51st out of112

25.1%
6th out of112

Agriculture
United Kingdom
Agriculture in the United
Kingdomuses around 70% of the
country's land area and
contributes about 0.7% of its
gross value added. The UK
produces less than 60% of the
food it eats.
The UK receives the fifth largest
agricultural subsidy in the EU, with
7% of the subsidy.
There is downward pressure on
the subsidies and on 19 November
2010
Since 1973, productivity has
grown by 49%, output volumes
have increased by 25% and input
volumes have fallen by 16%

South Africa
Agriculture in South
Africacontributes around 2.6
percent of GDP for the nation.
South Africa has a dual
agricultural economy, with both
well-developed commercial
farming and more subsistencebased production in the deep
rural areas.
South Africa is not only selfsufficient in virtually all major
agricultural products, but is also
a net food exporter. It is also the
leading exporter of protea cut
flowers, which account for more
than half of proteas sold on the
world market.

Industry
United Kingdom
n June 2010manufacturing
in the United
Kingdomaccounted for 8.2%
of the workforce and 12% of
the country's national output.
his was a continuation of the
steady decline in the
importance
ofManufacturingto
theEconomy of the UKsince
the 1960s, although the
sector was still important for
overseas trade, accounting
for 83% of exports in 2003.

South Africa
South Africa has developed
an established, diversified
manufacturing base that has
shown its resilience and
potential to compete in the
global economy.
The manufacturing sector
continues to occupy a
significant share of the South
Africa economy, despite its
relative importance declining
from 19 percent in 1993 to
about 17 percent in 2012 in
real terms.

Human Development Index

United Kingdom

The value of Human

Development Index of
United Kingdom is
0.892, according to
the united nations, for
the year 2013.

South Africa

The value of Human

Development Index of
South Africa is 0.658,
according to the
united nations, for the
year 2013.

South Africa Economic Reforms

South Africas success in reforming its economic policies is probably
best reflected by its GDP figures, which reflected an unprecedented
62 quarters of uninterrupted economic growth between 1993 and
2007, when GDP rose by 5.1%. With South Africas increased
integration into the global market, there was no escaping the impact
of the 2008-09 global economic crisis, and GDP contracted to 3.1%.
To ensure that there is a similar improvement in service-delivery
outcomes, the government is putting in measures to strengthen the
efficiency of public spending and to root out corruption.
Under its inflation-targeting policy, implemented by the South African
Reserve Bank (SARB), prices have been fairly steady. In January
2013, the annual consumer inflation rate was 5.4%, dipping from
December 2012's 5.7%. Stable and low inflation protects living
standards, especially of working families and low-income households.

United Kingdom Economic Reforms

For the past two decades British economic reforms have been
motivated by a desire to increase the reliance on market forces
and reduce the role of the state in the determination of prices and
the allocation of resources. Mrs. Thatchers Conservative
government privatized industries and council housing, enacted
laws to weaken trade unions, created financial incentives for
workers to choose private pensions, and reduced the benefits
available to unemployed workers, all the while preserving national
health and other features of the welfare state. The Major
government pursued a similar agenda, abolishing the Wages
Councils and privatizing many of the remaining state-owned
enterprises. Even after the defeat of the Conservatives, Tony
Blairs New Labour government continued to introduce marketenhancing reforms. It created tax breaks for employee share
ownership programs, opposed EU directives that were interpreted
by private employers as anti-business, and enhanced the work
incentives of the income support system. In the realm of monetary
policy, Labour went beyond the Tories by shifting interest-ratesetting authority from the Treasury to an independent Monetary
Policy committee. While there are some exceptions the Thatcher
campaign to centralize the public sector and limit the authority of
local government, and the Blair efforts to ease the formation of